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ChainCatcher News: Multiple U.S. crypto institutions, fintech companies, and retail industry organizations are joining forces to defend open banking. In a joint letter, they warn that large banks' attempts to charge for data access could sever the connection between the financial system and digital wallets and stablecoins.An alliance of organizations, including the Blockchain Association, the Crypto Innovation Council, the National Association of Convenience Stores, and the National Retail Federation, has written to the Consumer Financial Protection Bureau (CFPB), urging the regulator to retain key protective provisions in the proposed "Rule 1033." This rule would grant consumers the right to freely share their financial data with third-party service providers, enabling them to connect their bank accounts with crypto exchanges, stablecoin wallets, and other fintech platforms.The alliance points out that large banks are lobbying legislators to narrow the definition of "consumer representatives" and introduce data access fees. These changes would entrench the position of vested interests, weaken market competition, and sever the connection between cryptocurrencies, digital wallets, and the U.S. banking system.The joint letter emphasizes: "Robust open banking rules are crucial for building a competitive, orderly, and innovative financial services ecosystem. Many financial innovations used by Americans over the past decade have emerged from the policy expectations surrounding the U.S. transition to an open banking system." Although banks claim that open banking will increase their operational costs, the alliance counters that expenses such as cloud storage and technological infrastructure are already routine operational costs for any modern bank globally.The alliance warns that weakening Rule 1033 would cause the U.S. to fall behind major economies like the UK, Singapore, and Brazil, which have established open banking standards. "Strong open banking rules are key for the U.S. to remain competitive," the alliance urges the CFPB in the letter, stating that it "should not succumb to large banks' attempts to tax Americans' access to their financial data" when finalizing the rule.

ChainCatcher news, according to Jinshi reports, two Democratic senators from the United States are demanding that government efficiency department (DOGE) staff related to Musk leave the Consumer Financial Protection Bureau (CFPB), claiming their presence undermines the agency responsible for regulating the billionaire's yet-to-be-established payment business.Senators Elizabeth Warren and Adam Schiff stated that Musk "is not only suppressing the consumer protection agency regulating the X digital wallet, but he may also gain access to confidential company data that could provide X with an unfair advantage over competitors." Earlier this month, DOGE staff entered the agency, disrupting operations and shutting down headquarters, temporarily putting the agency in a dormant state.

ChainCatcher news, according to Cointelegraph, U.S. Senator Elizabeth Warren called Musk a "bank robber," accusing him and the Trump administration of dismantling the Consumer Financial Protection Bureau (CFPB) to gain financial control.

ChainCatcher News, the newly appointed acting director of the Consumer Financial Protection Bureau (CFPB) by President Trump, Russell Vought, has stated that he has cut off new funding sources for the agency and has reportedly asked staff to suspend all activities.Vought stated in a post on X on February 9: "I have informed the Federal Reserve that the CFPB will not draw down the next tranche of unallocated funds, as this is 'not reasonably necessary' for fulfilling its duties. Given the current fiscal environment, the agency's current balance of $711.6 million is actually excessive."It is understood that the agency was established to regulate financial companies such as banks and remittance companies, preventing them from engaging in abusive and predatory practices. It also accepts complaints against U.S. cryptocurrency exchanges.

ChainCatcher news, according to CNN reports, insiders revealed that Office of Management and Budget (OMB) Director Russell Vought took over as acting director of the Consumer Financial Protection Bureau (CFPB) on Friday evening, while officials from Elon Musk's Department of Government Efficiency (DOGE) deleted the regulatory agency's account on the X platform.The Wall Street Journal was the first to report that Vought's new appointment came just a day after he was confirmed by the U.S. Senate to serve as the OMB Director. Insiders told CNN that DOGE officials have gained administrative access to the CFPB system, including the content management system, the backend of the agency's website, and the personnel activity directory.Musk tweeted on Friday afternoon: "CFPB RIP," along with a tombstone emoji. Insiders stated that the DOGE team took over and deleted the CFPB's X platform account on Friday evening. The CFPB's homepage appears to have been deleted, showing a 404 error, while other pages remain accessible."Everyone is feeling frustrated and angry," the insider said when discussing the mood within the CFPB. Neither the White House nor the CFPB responded to CNN's request for comment.

ChainCatcher news, the crypto-friendly U.S. Treasury Secretary Scott Bessent quickly got to work after serving as the acting director of the Consumer Financial Protection Bureau (CFPB). Now, Bessent has essentially put the CFPB on lockdown.Staff will stop any lawsuits, investigations, or enforcement actions, and will refrain from making public statements. According to a memo, the effective date of any previously approved rules will also be suspended. This shift is seen as particularly beneficial for the crypto industry, which was also a target of former CFPB director Rohit Chopra. Last month, the CFPB proposed to expand the agency's electronic funds regulation to include cryptocurrencies.While the rule is unlikely to be finalized, the mere existence of such a proposal could impact pending litigation. The language in the proposal may also be adopted by various states, several of which have already enacted nearly identical electronic funds transfer regulations. The Trump administration has yet to nominate anyone to serve as the CFPB director.

ChainCatcher news, according to Reuters, two major tech trade groups, NetChoice and TechNet, have filed a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB) in an attempt to block the implementation of a new regulation targeting large non-bank payment applications and digital wallets. This rule applies to companies with an annual transaction volume of at least 50 million, covering products like Apple Wallet, Google Pay, and Venmo.The lawsuit claims that the CFPB has failed to demonstrate that this rule addresses specific consumer risks, accusing it of "illegal overreach," which could stifle innovation, reduce competition, and increase costs. It remains unclear whether the incoming Trump administration or the Republican-controlled Congress will attempt to amend or repeal the rule.

ChainCatcher news, two technology trade organizations, TechNet and NetChoice, have filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) challenging its regulatory approach of treating payment applications and digital wallets as banks. The lawsuit opposes the new rule released by the CFPB in December, which aims to expand regulation over "general digital consumer payment applications," primarily targeting large payment applications and non-bank financial service providers like digital wallets.Although the rule does not involve cryptocurrency wallet providers or decentralized wallets, its focus is on large non-bank companies. NetChoice litigation director Chris Marchese stated that the CFPB's expansion of power undermines the rule of law and could lead to higher prices and reduced choices.

ChainCatcher news, according to The Block, the Consumer Financial Protection Bureau (CFPB) is seeking public input on proposed rules aimed at providing more protections for consumers in cryptocurrency transactions to prevent fraud.The CFPB has proposed an "interpretive rule" explaining how the Electronic Fund Transfer Act and other regulations apply to emerging "digital payment mechanisms," such as stablecoins. The Act was passed in 1978 to protect consumers participating in electronic fund transfers.CFPB Director Rohit Chopra stated that consumers must be assured that their transactions will not be subject to harmful monitoring or erroneous influences when using new forms of digital payments. However, the outlook for the CFPB's rulemaking is unclear, as the agency has drawn the ire of the incoming Trump administration. Billionaire Elon Musk has stated that he would "abolish the CFPB."The CFPB noted that consumer use of stablecoins may increase in the coming years, but some in the crypto industry have criticized the proposed rules. Coin Center Executive Director Peter Van Valkenburgh stated that it is unclear whether the proposed rules cover self-custody wallet service providers and pointed out that the agency does not distinguish between cryptocurrency services provided by trusted intermediaries and software tools.Coin Center emphasized that if the CFPB intends to regulate self-custody wallets under Reg E and directly regulate the authors of self-custody software, then the proposed rule would exceed the CFPB's statutory authority and be unconstitutional. The deadline for public comments on the CFPB's proposed rules is March 31, 2025.

ChainCatcher news, according to Jinshi reports, billionaire Elon Musk has called for the abolition of the Consumer Financial Protection Bureau (CFPB), highlighting that this long-targeted regulatory agency by the Republican Party and business advocacy groups will face new threats under the Trump administration. Musk stated on social media on Wednesday, "Abolish the CFPB, there are too many overlapping regulatory agencies."Musk's comments are noteworthy as he will be working with the "Department of Efficiency" led by the Trump administration, which aims to cut federal bureaucracy and reduce government spending. After the outbreak of the 2008 financial crisis, the CFPB was tasked with overseeing certain responsibilities of the financial industry that interact with consumers. The agency has faced multiple legal challenges since its establishment.

ChainCatcher news, according to The Block, the Consumer Financial Protection Bureau (CFPB) finalized a rule this Thursday that grants it the authority to regulate "large non-bank companies," but explicitly excludes crypto assets. The CFPB stated that this rule only applies to transactions denominated in U.S. dollars.The new rule is titled "Defining Larger Participants in the Market for General Digital Consumer Payment Applications" and applies to non-bank financial companies that process more than 50 million transactions annually, requiring them to comply with the same rules as large banks and credit unions. The CFPB emphasized that the definition of "annual covered consumer payment transaction volume" is limited to transactions denominated in U.S. dollars and does not include digital assets such as Bitcoin and stablecoins.The crypto industry and some Republican lawmakers had previously expressed concerns about the potential impact of the rule on crypto assets. The DeFi Education Fund welcomed this and stated that the regulation of digital assets should be led by Congress, not regulatory agencies.

ChainCatcher news, according to Decrypt, Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), has issued a warning that large financial companies in the United States are widely collecting financial data from Americans, a practice that could lead to the U.S. becoming a market structure similar to that of China.To address this issue, Chopra urged the implementation of new regulatory measures, requiring payment companies to provide more information about personal data and the use of digital currencies. He emphasized that the disclosure of this information is crucial, as private companies have accumulated significant power over Americans' financial decisions.To limit surveillance opportunities, the CFPB is considering direct oversight of non-bank financial platforms' services while promoting a shift in the U.S. towards an open, competitive, and decentralized banking model to ensure personal data is not misused.Additionally, Chopra noted that the CFPB is prepared to take new actions related to digital currencies, with a particular focus on stablecoins. He emphasized that stablecoins may involve risks of surveillance and token instability, and therefore the CFPB is considering requiring technology companies to provide more information about their digital currency business models and to undergo new reviews.